JPMorgan Chase names new head of 'London Whale' unit

JPMorgan Chase (JPM) named Craig Delany, a 20-year veteran of the bank, as head of its chief investment office -- the unit that oversaw a $5.8 billion trading loss earlier this year. A spokesperson for the bank said the change was announced in an internal memo.

Delany's promotion comes as the bank continues to recover from its so-called London Whale trading losses and tries to refurbish its image as the best in the U.S. banking system. Shares of JPMorgan Chase have gained more than 10% since the bank reported its second-quarter results in mid-July. But the stock is still below the levels it was at when it first disclosed the trading loss in May.

Delany has practice fixing banking messes. For the past 18 months, he has run JPMorgan's mortgage servicing rights division, helping to clean up some of the troubled mortgages from the financial crisis. In the memo announcing his new title, CEO Jamie Dimon said that Delany was the right person for the job because he had been in the "center of some of the bank's toughest challenges."

According to the memo, Delany spent 18 years in the investment banking division. He also currently serves on the bank's executive committee.

Maureen Farrell is a staff writer at CNNMoney and covers Wall Street, banking, mergers and the stock and bond markets. Prior to joining CNNMoney, she covered venture capital and entrepreneurs for Forbes, and mergers and bankruptcy for Mergermarket and Debtwire, both divisions of the Financial Times.